SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : JPM Co. (JPMX, formerly JPMC)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Roadkill who wrote (95)11/7/1997 6:41:00 PM
From: Roadkill  Read Replies (2) of 157
 
Any comments on earnings?

The Good: .25 vs. reduced estimates of .23. Last year, the combined companies did .20. So, despite soft demand this Q, we still saw 20% EPS growth. Net revenues were up about 30%. Revenues were only up 3% or 4% due to the softness, but at least we are seeing some cost efficiencies with a larger company, resulting in better margins.

The Bad: Inventory is up substantially since last year (40-50%), but I'm not too worried. The cable assemblies JPM makes do not exactly go out of style or become quickly outdated. In any event, the press release expressly said that the seasonal softness is behind the company. In such a case, an inventory build-up is more of a positive than a negative -- it represents product ready to be blown out the doors. Cash is down, but I suppose that is due to the company's expansion of facilities. The secondary will provide plenty of cash.

The Bottom: Once we get the early December secondary out of the way, and once the Brazilian purchase is completed in early 1998 (FYI: the company JPM purchased was on a pace to double its revenues this year), we should be on the way back up. Perhaps the best sign of a bottom (besides the big 2-point reversal on 5x normal volume today) is a quiet board. This is a sure sign that the selling has just about dried up. :o)

Matt
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News